Finding 2022-001: Material Weakness - Internal Control Over Financial Reporting
Condition: A number of adjustments were required to report Unitrans' financial statements in accordance
with generally accepted accounting principles (GAAP). The books were not in balance at the start of the
audit, and f...
Finding 2022-001: Material Weakness - Internal Control Over Financial Reporting
Condition: A number of adjustments were required to report Unitrans' financial statements in accordance
with generally accepted accounting principles (GAAP). The books were not in balance at the start of the
audit, and fieldwork was delayed as a result.
Recommendation: For the year ended June 30, 2021 and 2022, Unitrans put together its own trial balance
in accordance with GAAP but some assistance was still required during the audit to ensure completeness
of financial reporting. We had recommended in prior audits that Unitrans' management work with ASUCD
and UCD finance staff to develop and update a more thorough self-balancing chart of accounts with names
that are consistent with the audited financial statements that captures all of Unitrans' financial activity. We
noted some progress made in this area as separate Unitrans funds have been created by ASUCD for
recording student fee revenue. However, there is still work needed to ensure all accounts balance. Prior to
the audit, reconciliations should be done to ensure all activity have been properly recorded and included in
the trial balance. We also recommend Unitrans' management work with ASUCD and UCD finance staff to
develop a process to ensure all of Unitrans' operating and capital transactions are identified, recorded and
correctly classified as required by generally accepted accounting principles prior to the start of the audit.
Corrective Action: ASUCD-Unitrans accepts the recommendation as stated.
ASUCD-Unitrans notes that this is a repeat finding from the prior fiscal year (Finding 2020-001 and 2021-
001).
The recommended action is currently in progress. UC Davis has been working for two years on a
comprehensive conversion of its financial accounting (cash management, accounts receivable, general
ledger, and fixed assets), procurement, and project/grant accounting systems. This conversion, named
Aggie Enterprise, now has an estimated go-live date of January 2, 2024. Unitrans management has provided
an assessment of our financial accounting and reporting needs, including the need for a complete, selfbalancing
chart of accounts, pursuant to the prior-year Findings 2020-001 and 2021-001 outlined below.
Person Responsible: Teri Sheets, Assistant General Manager-Administration; tmsheets@ucdavis.edu
Timeframe for Completion: Because the University’s system conversion is not expected to go live until
January 2024, we expect to resolve this and prior-year findings in the fiscal year starting July 1, 2024.